Beijing Enterprises Urban Resources Group (SEHK:3718) - Share price, News & Analysis

3718 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	2/6

3718 Stock Overview

Beijing Enterprises Urban Resources Group Limited, an investment holding company, provides environmental hygiene services in the People’s Republic of China.

Rewards

Price-To-Earnings ratio (5.4x) is below the Hong Kong market (9.1x)

Earnings are forecast to grow 14.12% per year

Earnings grew by 17.6% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 4% is not well covered by earnings

Beijing Enterprises Urban Resources Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Beijing Enterprises Urban Resources Group
Historical stock prices
Current Share Price	HK$0.75
52 Week High	HK$1.02
52 Week Low	HK$0.47
Beta	1.39
1 Month Change	-5.06%
3 Month Change	27.12%
1 Year Change	-22.68%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	8.70%

Recent News & Updates

Apr 06

Does This Valuation Of Beijing Enterprises Urban Resources Group Limited (HKG:3718) Imply Investors Are Overpaying?

How far off is Beijing Enterprises Urban Resources Group Limited ( HKG:3718 ) from its intrinsic value? Using the most...

Shareholder Returns

	3718	HK Commercial Services	HK Market
7D	-2.6%	1.7%	2.1%
1Y	-22.7%	-14.6%	-23.3%

Return vs Industry: 3718 underperformed the Hong Kong Commercial Services industry which returned -14.6% over the past year.

Return vs Market: 3718 matched the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 3718's price volatile compared to industry and market?
3718 volatility
3718 Average Weekly Movement	6.7%
Commercial Services Industry Average Movement	7.7%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 3718 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 3718's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2013	42,175	Kexi Zhao	https://www.beur.net.cn

Beijing Enterprises Urban Resources Group Limited, an investment holding company, provides environmental hygiene services in the People’s Republic of China. It operates through three segments: Environmental Hygiene Services, Hazardous Waste Treatment, and Others. The company provides road cleaning; garbage collection, sorting, and transportation; garbage transportation station management; public toilet management, manure collection and transportation; greenway maintenance; river cleaning; and property management services for government agencies and enterprises.

Beijing Enterprises Urban Resources Group Fundamentals Summary

How do Beijing Enterprises Urban Resources Group's earnings and revenue compare to its market cap?
3718 fundamental statistics
Market Cap	HK$2.70b
Earnings (TTM)	HK$502.03m
Revenue (TTM)	HK$4.45b

5.4x

P/E Ratio

0.6x

P/S Ratio

Is 3718 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3718 income statement (TTM)
Revenue	HK$4.45b
Cost of Revenue	HK$3.29b
Gross Profit	HK$1.16b
Other Expenses	HK$660.13m
Earnings	HK$502.03m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.14
Gross Margin	26.11%
Net Profit Margin	11.28%
Debt/Equity Ratio	54.9%

How did 3718 perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

22%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 3718 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3718?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3718. This is calculated by dividing 3718's market cap by their current preferred multiple.
What is 3718's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$2.70b

3718 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	3.9x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 3718's PE Ratio compare to its peers?

3718 PE Ratio vs Peers

The above table shows the PE ratio for 3718 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.6x

Forward PE

Price-To-Earnings vs Peers: 3718 is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (10.6x).

Price to Earnings Ratio vs Industry

How does 3718's PE Ratio compare vs other companies in the Hong Kong Commercial Services Industry?

Price-To-Earnings vs Industry: 3718 is good value based on its Price-To-Earnings Ratio (5.4x) compared to the Hong Kong Commercial Services industry average (9.8x)

Price to Earnings Ratio vs Fair Ratio

What is 3718's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3718 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.4x
Fair PE Ratio	5.8x

Price-To-Earnings vs Fair Ratio: 3718 is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (5.8x).

Share Price vs Fair Value

What is the Fair Price of 3718 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 3718's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 3718's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: 3718 is good value based on its PEG Ratio (0.4x)

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Future Growth

How is Beijing Enterprises Urban Resources Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3718's forecast earnings growth (14.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 3718's earnings (14.1% per year) are forecast to grow slower than the Hong Kong market (17% per year).

High Growth Earnings: 3718's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3718's revenue (11.6% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 3718's revenue (11.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 3718's Return on Equity is forecast to be low in 3 years time (15.4%).

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Past Performance

How has Beijing Enterprises Urban Resources Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

32.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3718 has a high level of non-cash earnings.

Growing Profit Margin: 3718's current net profit margins (11.3%) are lower than last year (12.1%).

Past Earnings Growth Analysis

Earnings Trend: 3718's earnings have grown significantly by 32.4% per year over the past 5 years.

Accelerating Growth: 3718's earnings growth over the past year (17.6%) is below its 5-year average (32.4% per year).

Earnings vs Industry: 3718 earnings growth over the past year (17.6%) exceeded the Commercial Services industry 9%.

Return on Equity

High ROE: 3718's Return on Equity (13.8%) is considered low.

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Financial Health

How is Beijing Enterprises Urban Resources Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3718's short term assets (HK$4.1B) exceed its short term liabilities (HK$1.7B).

Long Term Liabilities: 3718's short term assets (HK$4.1B) exceed its long term liabilities (HK$2.3B).

Debt to Equity History and Analysis

Debt Level: 3718's net debt to equity ratio (14.9%) is considered satisfactory.

Reducing Debt: 3718's debt to equity ratio has increased from 22.8% to 54.9% over the past 5 years.

Debt Coverage: 3718's debt is well covered by operating cash flow (23.4%).

Interest Coverage: 3718's interest payments on its debt are well covered by EBIT (14.3x coverage).

Balance Sheet

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Dividend

What is Beijing Enterprises Urban Resources Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3718's dividend (4%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 3718's dividend (4%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether 3718's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 3718's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.5%), 3718's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 3718 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average board tenure

CEO

Kexi Zhao (45 yo)

no data

Tenure

Mr. Zhao Kexi is the Chief Executive Officer and President at Beijing Enterprises Urban Resources Group Ltd and has been its Executive Director since April 09, 2019 and served as Director since March 26, 2...

Board Members

Experienced Board: 3718's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31